The Core Consumer Price Index (CPI) -which excludes food and energy prices- soared to another 30-year high in October as pricing pressures continue to mount. A Core CPI reading of 4.6% shows that inflation is continuing to accelerate beyond the Federal Reserve’s 2% inflation target. Yet even more concerning is the fact that inflation is bleeding into most items in the economy – an indication that today’s inflation is not being driven by a small number of potentially “transitory” price items. According to the Median Consumer Price Index, inflation in October was the broadest since the measure began in 1983 – which further underscores the stickiness of structurally higher inflation today. With inflationary pressures persisting, Fed officials may be forced to tighten policy and take away the punchbowl sooner than anticipated…
